Shareholders' say on pay: Does it create value?

Journal of Financial and Quantitative Analysis

Volumn 46, Issue 2, 2010, Pages 299-339

  Cai, Jie ^a   Walkling, Ralph A ^a  

^a DREXEL UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 79956110033     PISSN: 00221090     EISSN: 17566916     Source Type: Journal    
DOI: 10.1017/S0022109010000803     Document Type: Article

References (69)

1. Almazan, A.; J. C. Hartzell; and L. T. Starks. "Active Institutional Shareholders and Costs of Monitoring: Evidence from Executive Compensation." Financial Management, 34 (2005), 5-34. (Pubitemid 43132247)
2. Bainbridge, S. M. "Remarks on Say on Pay: An Unjustified Incursion on Director Authority." University of California at Los Angeles School of Law Research Paper No. 08-06 (2008).
3. Baird, J., and P. Stowasser. "Executive Compensation Disclosure Requirements: The German, U.K. and U.S. Approaches." Global Counsel (Oct. 2002), 29-42.
4. Barber, B. M. "Monitoring the Monitor: Evaluating CalPERS' Activism." Working Paper, University of California at Davis (2006).
5. Bebchuk, L. A. "The Case for Shareholder Access to the Ballot." Business Lawyer, 59 (2003), 43-66. (Pubitemid 38148674)
6. Bebchuk, L. A.; A. Cohen.; and A. Ferrell. "What Matters in Corporate Governance?" Review of Financial Studies, 22 (2009), 783-827.
7. Bebchuk, L. A.; J. M. Fried; and D. I. Walker. "Managerial Power and Rent Extraction in the Design of Executive Compensation." University of Chicago Law Review, 69 (2002), 751-846.
8. Bebchuk, L. A., and Y. Grinstein. "The Growth of Executive Pay." Oxford Review of Economic Policy, 21 (2005), 283-303. (Pubitemid 41179123)
9. Berger, P. G.; F. Li; and M. H. F.Wong. "The Impact of Sarbanes-Oxley on Cross-Listed Companies." Working Paper, University of Chicago (2005).
10. Bizjak, J. M.; J. A. Brickley; and J. L. Coles. "Stock-Based Incentive Compensation and Investment Behavior." Journal of Accounting and Economics, 16 (1993), 349-372.
11. Black, B. S. "Shareholder Activism and Corporate Governance in the United States." The New Palgrave Dictionary of Economics and the Law, 3 (1998), 459-465.
12. Brook, Y.; R. Hendershott; and D. Lee. "The Gains from Takeover Deregulation: Evidence from the End of Interstate Banking Restrictions." Journal of Finance, 53 (1998), 2185-2203.
13. Bryan, S.; L.-S. Hwang; and S. Lilien. "CEO Stock-Based Compensation: An Empirical Analysis of Incentive-Intensity, Relative Mix, and Economic Determinants." Journal of Business, 73 (2000), 661-693.
14. Burns, N., and S. Kedia. "The Impact of Performance-Based Compensation on Misreporting." Journal of Financial Economics, 79 (2006), 35-67. (Pubitemid 41825359)
15. Bushee, B. J., and C. Leuz. "Economic Consequences of SEC Disclosure Regulation: Evidence from the OTC Bulletin Board." Journal of Accounting and Economics, 39 (2005), 233-264. (Pubitemid 40553756)
16. Cai, J.; J. L. Garner; and R. A. Walkling. "Electing Directors." Journal of Finance, 64 (2009), 2389-2421.
17. Cai, J.; J. L. Garner; and R. A. Walkling. "Paper Tiger? An Empirical Analysis of Majority Voting." Working Paper, Drexel University (2010).
18. Cai, J., and A. M. Vijh. "Incentive Effects of Stock and Option Holdings of Target and Acquirer CEOs." Journal of Finance, 62 (2007), 1891-1933.
19. Campbell, J. Y.; A.W. Lo; and A. C. MacKinlay. "The Econometrics of Financial Markets." Princeton, NJ: Princeton University Press (1997).
20. Chhaochharia, V., and Y. Grinstein. "Corporate Governance and Firm Value: The Impact of the 2002 Governance Rules." Journal of Finance, 62 (2007), 1789-1825.
21. Chhaochharia, V., and Y. Grinstein. "CEO Compensation and Board Structure." Journal of Finance, 64 (2009), 231-261.
22. Chow, C. W. "The Impacts of Accounting Regulation on Bondholder and Shareholder Wealth: The Case of the Securities Acts." Accounting Review, 58 (1983), 485-520.
23. Coles, J. L.; N. D. Daniel; and L. Naveen. "Co-Opted Boards: Costs, Benefits, Causes, and Consequences." Working Paper, Arizona State University, Drexel University, and Temple University (2007).
24. Core, J., and W. Guay. "The Use of Equity Grants to Manage Optimal Equity Incentive Levels." Journal of Accounting and Economics, 28 (1999), 151-184.
25. Core, J. E.; W. R. Guay; and R. E. Verrecchia. "Price versus Non-Price Performance Measures in Optimal CEO Compensation Contracts." Accounting Review, 78 (2003), 957-981. (Pubitemid 37395648)
26. Core, J. E.; R. W. Holthausen; and D. F. Larcker. "Corporate Governance, Chief Executive Officer Compensation, and Firm Performance." Journal of Financial Economics, 51 (1999), 371-406.
27. Davis, S. "Does 'Say on Pay' Work? Lessons on Making CEO Compensation Accountable." Yale Millstein Center Policy Briefing (2007).
28. Deane, S. "Say on Pay: Results from Overseas." Corporate Board (July/Aug. 2007), 11-18.
29. DeFond, M. L., and C.W. Park. "The Effect of Competition on CEO Turnover." Journal of Accounting and Economics, 27 (1999), 35-56.
30. Ertimur, Y.; F. Ferri; and S. R. Stubben. "Board of Directors' Responsiveness to Shareholders: Evidence from Shareholder Proposals." Working Paper, Duke University, Harvard University, and University of North Carolina at Chapel Hill (2007).
31. Fama, E. F. "Agency Problems and the Theory of the Firm." Journal of Political Economy, 88 (1980), 288-307.
32. Fama, E. F., and K. R. French. "Common Risk Factors in the Returns on Stocks and Bonds." Journal of Financial Economics, 33 (1993), 3-56.
33. Fama, E. F., and K. R. French. "Industry Costs of Equity." Journal of Financial Economics, 43 (1997), 153-193. (Pubitemid 127160036)
34. Ferri, F., and D. Maber. "Solving the Executive Compensation Problem through Shareholder Votes? Evidence from the U.K." Working Paper, Harvard Business School and University of Southern California (2009).
35. Fich, E. M., and A. Shivdasani. "Are Busy Boards Effective Monitors?" Journal of Finance, 61 (2006), 689-724. (Pubitemid 43388189)
36. Gaver, J. J., and K. M. Gaver. "Additional Evidence on the Association between the Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies." Journal of Accounting and Economics, 16 (1993), 125-160.
37. Gillan, S. L., and L. T. Starks. "Corporate Governance Proposals and Shareholder Activism: The Role of Institutional Investors." Journal of Financial Economics, 57 (2000), 275-305.
38. Gillan, S. L., and L. T. Starks. "The Evolution of Shareholder Activism in the United States." Journal of Applied Corporate Finance, 19 (2007), 55-73.
39. Gompers, P.; J. Ishii; and A. Metrick. "Corporate Governance and Equity Prices." Quarterly Journal of Economics, 118 (2003), 107-155. (Pubitemid 36263883)
40. Greenstone, M.; P. Oyer; and A. Vissing-Jorgensen. "Mandated Disclosure, Stock Returns, and the 1964 Securities Acts Amendments." Quarterly Journal of Economics, 121 (2006), 399-460. (Pubitemid 43668211)
41. Grundfest, J. A. "Just Vote No: A Minimalist Strategy for Dealing with Barbarians Inside the Gates." Stanford Law Review, 45 (1993), 857-937.
42. Hall, B. J., and K. J. Murphy. "The Trouble with Stock Options." Journal of Economic Perspectives, 17 (2003), 49-70. (Pubitemid 38883445)
43. Harris, M. S. "The Association between Competition and Managers' Business Segment Reporting Decisions." Journal of Accounting Research, 36 (1998), 111-128. (Pubitemid 128106981)
44. Hartzell, J. C., and L. T. Starks. "Institutional Investors and Executive Compensation." Journal of Finance, 58 (2003), 2351-2374. (Pubitemid 37488590)
45. Hsieh, J., and R. A.Walkling. "Determinants and Implications of Arbitrage Holdings in Acquisitions." Journal of Financial Economics, 77 (2005), 605-648. (Pubitemid 41179267)
46. Jensen, M. C., and W. H. Meckling. "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure." Journal of Financial Economics, 4 (1976), 305-360.
47. Jensen, M. C., and K. J. Murphy. "Performance Pay and Top-Management Incentives." Journal of Political Economy, 98 (1990), 225-264.
48. Johnson, M. F.; R. Kasznik; and K. K. Nelson. "Shareholder Wealth Effects of the Private Securities Litigation Reform Act of 1995." Review of Accounting Studies, 5 (2000), 217-233.
49. Johnson, M. F., and M. B. Shackell. "Shareholder Proposals on Executive Compensation." Working Paper, University of Michigan (1997).
50. Karpoff, J. "The Impact of Shareholder Activism on Target Companies: A Survey of Empirical Findings." Working Paper, University of Washington (2001).
51. Karpoff, J. M., and P. H. Malatesta. "The Wealth Effects of Second-Generation State Takeover Legislation." Journal of Financial Economics, 25 (1989), 291-322.
52. Karpoff, J. M., and P. H. Malatesta. "State Takeover Legislation and Share Values: TheWealth Effects of Pennsylvania's Act 36." Journal of Corporate Finance, 1 (1995), 367-382.
53. Karpoff, J. M.; P. H. Malatesta; and R. A. Walkling. "Corporate Governance and Shareholder Initiatives: Empirical Evidence." Journal of Financial Economics, 42 (1996), 365-395. (Pubitemid 126164695)
54. La Porta, R.; F. Lopez-de-Silanes; and A. Shleifer. "What Works in Securities Laws?" Journal of Finance, 61 (2006), 1-32. (Pubitemid 43425511)
55. Li, H.; M. Pincus; and S. O. Rego. "Market Reaction to Events Surrounding the Sarbanes-Oxley Act of 2002 and Earnings Management." Journal of Law and Economics, 51 (2008), 111-134.
56. Litvak, K. "The Effect of the Sarbanes-Oxley Act on Non-U.S. Companies Cross-Listed in the U.S." Journal of Corporate Finance, 13 (2007), 195-228.
57. Lo, K. "Economic Consequences of Regulated Changes in Disclosure: The Case of Executive Compensation." Journal of Accounting and Economics, 35 (2003), 285-314. (Pubitemid 37041600)
58. Mehran, H. "Executive Compensation Structure, Ownership, and Firm Performance." Journal of Financial Economics, 38 (1995), 163-184.
59. Schipper, K., and R. Thompson. "The Impact of Merger-Related Regulations on the Shareholders of Acquiring Firms." Journal of Accounting Research, 21 (1983), 184-221.
60. Schwert, G. W. "Using Financial Data to Measure Effects of Regulation." Journal of Law and Economics, 24 (1981), 121-158. (Pubitemid 11032027)
61. Sefcik, S., and R. Thompson. "An Approach to Statistical Inference in Cross-Sectional Models with Security Abnormal Returns as Dependent Variable." Journal of Accounting Research, 2 (1986), 316-334.
62. Shivdasani, A., and D. Yermack. "CEO Involvement in the Selection of New Board Members: An Empirical Analysis." Journal of Finance, 59 (1999), 1829-1853.
63. Smith, C. W., and R. L. Watts. "The Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies." Journal of Financial Economics, 32 (1992), 263-292.
64. Thomas, R. S., and J. F. Cotter. "Shareholder Proposals in the New Millennium: Shareholder Support, Board Response, and Market Reaction." Journal of Corporate Finance, 13 (2007), 368-391.
65. Thomas, R. S., and K. J. Martin. "The Effect of Shareholder Proposals on Executive Compensation." University of Cincinnati Law Review, 67 (1999), 1021-1081.
66. Yermack, D. "Do Corporations Award CEO Stock Options Effectively?" Journal of Financial Economics, 39 (1995), 237-269.
67. Yermack, D. "Higher Market Valuation of Companies with a Small Board of Directors." Journal of Financial Economics, 40 (1996), 185-211. (Pubitemid 126171463)
68. Yermack, D. "Flights of Fancy: Corporate Jets, CEO Perquisites, and Inferior Shareholder Returns." Journal of Financial Economics, 80 (2006), 211-242. (Pubitemid 43394133)
69. Zhang, I. X. "Economic Consequences of the Sarbanes-Oxley Act of 2002." Journal of Accounting and Economics, 44 (2007), 74-115.